Financial services are a vital part of our economy. They help people get the money they need in loans for homes, cars, education and other purchases. They allow individuals to save for retirement and other goals, protect their health and property with insurance and ensure businesses have the money they need to grow and thrive. The financial industry also employs millions of hardworking, well-paid Americans.
When many think of the Financial services industry, they think of banks, brokers and mortgage lenders. However, those three industries are only a small portion of the overall industry. There are also debt and credit services, securities traders, investors, financial advisors, and much more. This industry not only impacts large corporations and Wall Street, but it also affects small businesses, nonprofits and even government agencies.
Traditionally, different sectors in the financial services industry were kept separate. But as time went on, consumers began to demand more from their banking institutions and companies started merging to offer a wider range of products. As a result, the lines between sectors have become more blurred and it is becoming increasingly common for financial services firms to manage assets in multiple areas.
Some of the most important sub-sectors in this industry include:
Investment management – This sector involves managing and overseeing investment portfolios for individuals and organizations. It can involve everything from hedge funds to mutual funds to real estate investments. Financial services companies that provide this service often maintain research departments that provide their clients with a public stance on specific stocks and industries.
Banks and other depository institutions – These include commercial banks, building societies and credit unions. They take in deposits and offer a wide variety of loan products, including mortgages, credit cards and business loans. They can also provide other financial services such as cash management and wealth advisory.
Insurance – This sector includes a broad range of insurance products that cover everything from personal and medical to property and business. In addition to providing protection from loss and liability, these services can also provide investment opportunities through policies like life and health insurance or by selling policies that pay out an amount in the event of a covered accident or loss.
The Financial services industry is a massive one, and there are many ways to break into it. The most important thing is to have a strong network of connections. Whether it’s someone who can vouch for your character or abilities, this is going to make your chances of getting a job a lot higher than if you apply with no connections at all. Once you’re in the field, it is possible to work your way up, learning on the job and getting better each step of the way. Then, with hard work and dedication, you can move up the ranks and be successful in this booming sector of our economy.